Posted on 3 May 2013
Loughborough-based internet network provider Globalwave Communications has been snapped up by TFM Networks in a deal supported by Yorkshire Bank.
The bank's acquisition finance team in the Midlands provided senior debt and working capital facilities to TFM, an Aylesbury-based internet and telecoms business. The funding was also used to support a shareholder restructuring at the company.
TFM, which was formed in 2003 and employs 17 staff, and Globalwave, established in 2001, operate in the managed services and networks market, providing packaged telecoms services to multi-site small and medium-sized businesses.
Globalwave moved from operating primarily in website development and design to that of a managed network provider and joined BT's Collaborative Partner Programme in 2004. It provides internet network services to BT's small to mid-tier customers.
Stewart Yates, managing director of TFM, becomes head of the enlarged group. TFM chief operating officer David Heyes assumes the same role for the group and also becomes managing director of TFM. Matt King, technical director of Globalwave prior to the sale, joins the group board.
The deal was led by Ian Mansell and Ian Howey at Yorkshire Bank.
Mansell said: "Both TFM and Globalwave have recently invested heavily in their own networks and have developed a strong and growing recurring revenue base from a good mix of customers. The acquisition will enable both of them to expand the range of services that each provides and eliminate duplicated costs."
The bank was advised by Paul Ray from Browne Jacobson in Birmingham. Financial due diligence was provided by Paul Johnson and David Horsburgh of Baker Tilly and Robin Leggett of MCi reported on the market.
Paul Isaacs advised TFM on the deal and Paul Hayward of Gateley provided legal advice to the business.
Stephen McElhone of Spearing Waite provided legal advice and Chris Taylor of Smith Cooper provided commercial support for Globalwave.